LOREAL_Registration_Document_2017

1 Presentation of the Group Integrated report

GOOD GROWTH MOMENTUM FOR SHARED, LASTING DEVELOPMENT*

CONSTANT, SHARED GROWTH 1.3.2. Priority to human capital L’Oréal has always been guided by humanist values that have led it to place the individual and talent at the very heart of its organisation. As its founder, Eugène Schueller affirmed with conviction “a company is not walls and machines but men, men and more men.” These strategic intangible assets are one of the Group’s main competitive advantages in the long term, alongside its brands, governance and Research. The Group’s human and social project revolves around two priorities: the first is individual performance development of employees and future leaders and the second is social performance. L’Oréal has always targeted constant, sustainable growth. Since its very beginnings, the Group has been committed to developing its presence in all regions of the world by applying the fundamental rules of a good corporate citizen. The products offered to consumers meet the highest quality standards; the Group’s social commitments are the same in all its subsidiaries; all production centres comply with the same rules aimed at reducing their environmental footprint. Social audits are conducted in relation to the suppliers of plants and distribution centres. Each subsidiary contributes, in accordance with its resources, to the L’Oréal Foundation's major programmes, notably “F or Women in Science” , “B eauty for a Better Life” , or other Group philanthropic initiatives, such as Hairdressers against Aids (see chapter 3). Above and beyond its solid long-term economic performances, the Company seeks to be exemplary and sets itself demanding standards in order to limit its environmental

footprint. In October 2013, all the L’Oréal Group’s Sustainable Development commitments were formally provided for and structured at a strategic level within the scope of the S haring Beauty With All programme. Sharing Beauty With All The Sharing Beauty With All programme presents the targets that the Group has set itself for 2020 with the aim of reducing its environmental impact and increasing its social commitments, while sharing its growth with the surrounding communities. Every year, L’Oréal reports on its strategy and its results transparently and giving figures via performance indicators. A panel of independent international experts called the Panel of Critical Friends meets regularly to review progress made and take a critical look at the actions taken and suggest improvements. The Sharing Beauty With All programme stands out for its complete integration into the Company’s value chains it therefore covers all the Group’s impacts, broken down into four areas: innovating sustainably, which aims at improving the s environmental and social profile of products (see section 1.2.5); producing sustainably, to reduce the environmental s footprint of the Group’s plants and distribution centres, all over the world (see section 1.2.6); living sustainably, to engage with consumers and offer s them the possibility to make sustainable consumption choices; developing sustainably to share growth with all the Group’s s stakeholders (employees, suppliers, communities).

Innovating sustainably By 2020, 100% of the Group’s products will have an environmental or social benefit.

Producing sustainably By 2020, the Group commits to reducing its environmental footprint by 60%, while extending its global presence.

Living sustainably By 2020, the Group wants to empower all L’Oréal consumers to make sustainable consumption choices.

Share growth with employees - by 2020, L’Oréal employees will have access to health-care,social protection and training,wherever they are in the world; with suppliers - by 2020; 100% of the Group’s strategic suppliers in the supplier sustainability programme; with communities - by 2020, through its actions, the Group will enable more than 100,000 people from underprivileged communities to access work.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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